The 5.1 direct is a six-channel (left, right, center, left surround, right surround, subwoofer) analog input -- six analog connections -- that is used mainly for DVD-Audio and SACD players. DVD-Audio and SACD both have to output an analog signal rather than digital due to copy protection concerns.
The DirecTV/TIVO you have should have a digital audio output (either a single coaxial - "RCA" - output or an optical output) that can be connected to one of the digital inputs on the 1050. Once you do that, the 1050 can process Dolby Digital 5.1 for you when a Dolby Digital signal is available.
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